>> all right. are you excited? coming up, 4:00 in the afternoon in europe. the closing from bell. this is the bloomberg market day. i'm betty. we go.e wit a close to another trading day. scarlet, bring in josh. we have the bloomberg news and editor,omberg stocks mike. atlet's just quickly look where we are, about to close here, because just as we've gotten into the last few moments, you can see here, we've

down here, guys. /10 of 1%.0, off by 2/s maybe everyone is just sort of their books out before the weekend. >> well, you don't want to be weekend, whenlong something could happen in greece. >> that makes sense. 20% less thant average for the day. and really, the big mover of the was qwest diagnos diagnosis. newstells you how little there was today. >> and how trigger-happy investors are. >> reminds me of -- i hate to say anything reminds me of 2007, day, whenn the scarlet was training me how to day it terminal, every was sperks. didn't matter how bogus the rumor was. you somethingls about a bull market that's this

old. slowing.s in that extent, it is similar to love to talkeople about rumors 678. cti, whichhave showed a pickup. says if yousenberg go back to 1960, this has been the best g.d.p. inflation backdrop, because gp g.d.p. is between 2% and 3%. the s&p 500ppens, on average gains 15% annually. a good right now this is environment for stocks, not so much necessarily for bonds. to say, yes,g bonds did sell off a bit today, partly in response or largely in to cpi data, showing that inflation was coming in at measured inflation since january 2013. this is actually raising a concern in the bond markets. they are going to hike this bond values could potentially lose. >> that's exactly what her

2015 is for real. mention --actually >> for real, yes! [laughter] >> she's not kidding around. be --id they've got to she wants to keep the bond honest. even though she didn't really sher to that data, in fact emphasized the fact that the fed has not been as successful on its inflation mandate as it has an its employment mandate. was was curious whether she going to change her remarks at all. >> i think she doesn't want to on any oneoff report. if she does, it sets a precedent. her job is to keep it at a high level and keep bringing other people back to the high level. very little that can actually move markets. right before a three-day weekend, if she had come out and said this cpi, this makes me rethink a lot of things, guys. big problem. >> speaking about not wanting to move the markets, i mean, you've

little the how markets have moved. >> usually mike and i would stare at it and say, this is the biggest rise or decline since. this is actually the smallest since. about us, howuch nerdy we are. but this is the smallest move for the dow jones industrial average in qoi quite a while. we've moved fewer than 100 points for six days now. today, 69-point swing. yesterday, 65 points. wednesday, 77. this is the longest such streak year. this don't expect things to necessarily pick up on tuesday, work.e all come back to last year at this time, it took a 90's stretch before we ended of not movingod more than 100 points. >> what's interesting about that in bond market, you're seeing much more volatility. if you look at the bank of america, merrill lynch, that trading, you're actually seeing it on the rise. it's about 40% higher than it

time last year. there is a sort of divergence volatility between the bonds and stock markets. into that?you read >> it's time for me to move over and start covering bonds. that's my read. the move index i believe is a index. >> treasury. >> this is something that the fed was talking about. they're probably encouraged it.ee an uptick in that's what they were talking about from the april meeting. there's this technical discussion. it was short but about a very called the term premium. talking aboutally was rates. the fed is very concerned about the possibility that they might thing and the market is going to overreact. and what do you know? now you're headed back towards a recession. >> do you think that the fact that the volatility has been reduced in stock markets, does do witht have have to

earnings? >> it's hard to pinpoint any it. one catalyst for obviously the lack of really disastrous news recently is part of it. part of it is, you know, sort of growth is solved. there's not a whole lot of -- right? actually down, >> it kind of has a small gain for this quarter, but forecast twoe down for the next quarters. >> it all depends on whether you keep energy or not. point too ore around there was the forecast for the current quarter, excluding energy. still pretty weak. but really, the question is, well, like the fed says, is this transitory sort of slowdown we're seeing? believe ite bulls sounds kind of cliche but the two second-half pickup is what thes a lot of people in market. >> i'm just going to pull up something that shows the average earnings growth so far this quarter was 0.1% while sales 3.5%.ed

this liquidity coming out of europe. we were talking about the idea of bad news is good news. doesn't apply for the u.s. so much anymore. but it maybe applies more in europe. >> and josh, to your point, while you are seeing volatility treasuries, you are seeing very muchacency still at play in high-yield bonds. thehe fed isn't out of woods yet. >> we have a huge amount of data coming out. we've got the revision to the first quarter g.d.p., new home sales. >> probably down. inventory suggests we're going have a lower possibly negative print in first-quarter g.d.p. once again. >> that's what gree greenspan ws earlier this week. >> it's a whole different composition of factors that led to weakness in the first quarter this year versus last year. >> is any of that priced in? >> there's also the whole the season outing. a lot of people questioning whether -- all the first quarter

years,, back for a few how accurate they are. so who knows when they'll sort all that out? of seasonality -- the increase we've seen in is seasonal. it's actually been smaller than vs. we've seen in the past the average. yet, there's a story line out there that energy's recovery is helping to drive the inflation especially other in europe. does that matter, when the fed strips out energy in its callus of inflation -- calculus on inflation? of this report that is different than the feds' measure of inflation, it's not clear that the -- >> this is sort of a different situation, because with energy prices plunging so much at the beginning of the year, there was justcern that they were going to free fall. there was a feeling of a lack of stability. that they've stabilized has given some confidence that

inflation will pick up. the -- you mentioned first quarter gched revision -- revision. we've got durable goods. university of michigan consumer sentiment. what could surprise? >> i think all eyes are going to the end of the week. that is the number one question, is how deep was it in the first quarter? composition?he it's really about the details this year. what's the mix of growth? home sales, inew think that will get a lot of attention, because existing home weak this week, but housing starts are really strong. so new home sales could tip the terms of what's going on in the housing demands. >> 20% increase? >> yes. some of it making up for lost time in earlier months. compositiononed the of growth, housing had been stronging this year. really high hopes. >> and also, we're going to be extremely data-dependent from out, until june 17,

because earning season is by and large over. have 486 out of 500 companies in the s&p 500 that firstome out with their quarter results. so everyone is going to be every little data point. >> the pace of our rate hikes, ben after the first, will completely data-dependent. i think the market is probably going to be completely data here on out,m regardless of what anyone says. she said it. se sai any forecast i make is going to be wrong too. but that was a pretty charming -- >> there was. there were a couple of moments where it's like, aw, she's a real person. >> when she was reading from her text and she paused. the page, to the economy. >> reminded her of what she was talking about. economy, weto have have the labor report as well, in the beginning of june. point ase big data well, right after the first quarter numbers. >> absolutely. i think the stakes are only ever because the question with the labor market is, was

arch just a blip or was it harbinger of more weakness? the feds are avoiding this topic. you take a look at janet yellen's comments today. talking out of both sides of her mouth. i think the takeaway there is that the fed doesn't want to get wrong footed by the data. they don't want to make a call on a friend before they've oflly got the facts in front them in did you get the impression she was very much interested in the numbers? talk about slack in the labor force, people working part-time. sorten't heard them give a of employment number estimate that they'd like to see. it's still above 10%. >> i haven't seen her focus on that so much. she looked at more granular items like involuntary part-time, people who want to full-time. she actually went in significant amount of detail. >> i'd like to work part-time, me.they won't let >> involuntary full-time. >> on that note, guys, josh, mike, thank you so much for joining me.

much more ahead on bloomberg market day.

>> welcome back to "bloomberg market day." i'm betty. the bank of england, taking a look at some potential risks. of the's renegotiation european union membership. that story from the breaking news desk. >> earlier today, "the guardian" that it had received an mistakenly, it looks like, from the bank of england, saying it was exploring what indeed britain does decide to leave the european union. particular, the currency. prime minister david cameron is planning a public vote on e.u. membership by the end of 2017.

so this news came out, the newspaper said it would be for thelly embarrassing boe president, mark carney. of england came out with a statement saying there are a range of financial issues that arise in the context referendum's planned on the e.u. the project, which is known as end, they say it really shouldn't come as any surprise that we're looking at it. it also examined what would happen if scotland had to go independent. a little bit of damage control, being done by the bank of england. interesting that it is preparing to examine sort of the nuts and bolts, how would it work? what would the affect be? >> they would be remiss not to, right? rather strange the way it has come about, to people's knowledge. okay. thank you so much, julie. our senior market correspondent there. for more on today's market

chief we're joined by the global investment strategist with charles schwab. get into talking about your views on the markets, what did you think of yellen today? >> you know, there's not much to make of it. i mean, i think she's right to dismiss a lot of what's taken place here to soften the economy, as transitory. my favorite things to look at on my bloomberg terminal is the economic surprise index for the u.s. look at it,ake a it's been plunging this year. but you know what? it's plunged in the first half every one of the past five years, bottomed in the summer, and picked back up in the fall, datasting that economic disappoints in the first half, secondrprises in the half. that sets us up for a september or october rate hike. bullish? remain >> positive on the market for sure. i mean, i think we're still in a backdrop where equities are the place to be, relative to fixed income. increasing m&a

activity. buybacks continue. that's taking shares out as well. they're creeping back in. institutions still are. that remains the big force in the market. >> okay. but you know that earnings are fact -- and i know you've got to take energy out of it here -- are falling, right? >> that's absolutely true. we have seen earnings declines, u.s.ust in the this is true in europe, in asia. and the question is, well, what's causing that? know, is this another three-year pause in earnings saw after 2011 or is this shorter lived? when i look at these companies and what they're saying, i'm hearing weather, the west coast i'm hearing transitory factors that look to be turning around. in fact, this earnings season a bit of a surprise to the upside in europe. so maybe already some of those to recedee beginning and we might be on the cusp of a return to earnings growth. those do you know that

transitory factors are not actually masking bigger problems for the companies? >> well, i guess we don't know for sure. but as i look back to the other earnings downturns, back when earnings on a worldwide basis were at this level, the prior two times, they were talking about a big drop-off in demand, or a surge in inventory level. we are not hearing that or this time arngd. around. we're just simply seeing an that's maybe a little softer. >> what do you make of the decreasing amount of volatility in stock markets, particularly vis-a-vis the bond market? >> hmm. become a market that's simply traded by governments anymore. typest don't have the same of participants in the markets anymore. but boy, you know, so many central banks participating in dampening the

volatility, it's just not a place where we find a lot of that anymore. to other partsed of the marketplace. i don't think that's unusual. seems that there are many simply maybeare not for individual investors as anymore. >> bottom line, what is most attractive to you right now, jeff? >> you know, i like what i'm seeing oversees. there we're seeing growth pick whether it's europe or even in japan. one thing i'd like to bring up might seeade deal we get done later today or tomorrow. that's a big win for japan. has about 20% of its trade with countries it has a with.rade agreement getting the tpt done, that will be on the back of this deal. it to 40%.xpand it can get to 70% by the end of the year. plus for japan's manufacturing sector. i like that a lot. >> we'll see if the senate approves it later today. jeff, the chief global investment strategist at charles

schwab in boston. much more ahead, we're fight for global equality. hear from john brown, the former book, "theis new glass closet."

>> welcome back to "bloomberg market day." i'm betty. voters in ireland deciding whether to legalize same-sex marriage. opinion polls suggest the government-backed amendment favoring gay marriage will be approved. with bloombergke to discuss the progress of and what itlity means to be openly gay in the corporate world. think it's come a

tremendous way, but i still think i score it five-point-something out of 10. the glass is definitely half full, not half empty. in all movements which change the way in which people look at a minority, and i tell is a generality, constant vigilance is needed. see great things happening in some corporations. other corporations going nowhere. there's been fantastic movements on equality of marriage in the in europe. but yet, for example, when i tried to distribute this book, italy, which is not a long way from anywhere, it was as simply still too controversial to be sold. >> it is soatal. societal. and you lived it. could you have been john browne years ago now? >> no. i mean, i think what i did then was fit for the purpose then. it was not right, but i had to do it. discussionsu know,

on succession for people to senior jobs. they would say, well, that might be a bit risky. he, after all, has gone through a divorce. so things have changed so much. today to change yesterday. >> you know, it's so hard to something isen actually changed. you can look at polling data. it's the anecdotal evidence that is so powerful. you've got this beautiful story you wrote about, giving a book lecture at hensley, and having a couple come up to you. had a middle-aged couple come up to me. they took a book and gave me a and said, we'd like you to sign this to our son, because out.like him to come so that's the tables reversed. know, this is parents getting kids to come out. >> one of the responses here is of people with advantages, big incomes and huge corporate stability, like a brown or a

tim cook, it's easy to talk about. i'm worried about the guy at petroleum, whose employee number 8,432. is your view on their opportunities and their 2020?lity in >> that's why this book, i believe, is still relevant. it is about setting tone, making you have a role model to look up to. people couldently look around and say, if i come out... models are important. and the company corporations really want to have inclusion and protect people, make it safe for them to be themselves. >> when tim cook came out of the closet, how much did that change? was that?ant because there's still only, i openly out c.e.o.'s of publicly listed companies. >> correct. >> what changed when tim cook came out? >> very important because tim is leading the world's largest

corporation. said, you can do something with that profile about being yourself. studied theyone progress that she made to come out. instant. it was thoughtful. but it changed people's views gay you can in fact have a leader. >> yeah. >> and a successful gay leader. >> well, that was, again, the former c.e.o. and author of "the glass closet," john browne. watching "bloomberg market day"! have a great weekend! tuesday. you

♪ from our studios in new york city, this is "charlie rose." letterman's last show aired wednesday night, may 20. he started with a cold open from gerald ford, followed by four living presidents. >> my fellow americans, our long national nightmare is over. >> our long national nightmare is over. >> our long national nightmare is over. >> our long national nightmare is